27 July 2012 18:55 [Source: ICIS news]
HOUSTON (ICIS)--US butadiene (BD) contracts for August settled flat, market sources said on Friday, adding that a supplier that normally does not settle with the rest of the market has agreed to roll back its nomination.
The supplier had initially nominated August at $1.00/lb ($2,205/tonne, €1,786/tonne), up by 4 cents/lb from July, but sources said the producer has scaled the initiative back to 96 cents/lb.
The reversal came after three other US producers, which account for 82% of the US capacity negotiated in the monthly contract, held their August contracts flat at 90 cents/lb.
US BD contracts normally settle at the end of the month for the following month.
US demand for BD remains lacklustre, market sources said, adding that weak conditions at home prevented the US contract from tracking recent gains in Asian prices.
BD prices in Asia softened this week, but the market was still up by around 30% since mid June, when supply disruptions in Taiwan triggered the latest price run-up in the region.
In Europe, the monthly contract price (MCP) for August settled on Friday at €1,575/tonne ($1,944/tonne), up by €75/tonne from July largely because of upstream cost pressure.
BD producers in North America include ExxonMobil, LyondellBasell, Shell and TPC Group. Buyers include Ashland, Invista, LANXESS, Michelin and Negromex.
($1 = €0.81)
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